Depreciation Expense for the Most Recent Fiscal Year on Equipment

question 20

Essay

Depreciation expense for the most recent fiscal year on equipment purchased a few years ago is
$10,000.The balance sheet at the end of the same year disclosed the following: The asset is not expected to have a salvage value and the firm depreciates the asset on the straight-lin basis.In March of the NEXT year (the year of change), the firm decided to reduce the original total useful life 20% and that a salvage value of $30,000 is a reasonable estimate.The firm also decided that the double declining balance method is a more appropriate depreciation method for this asset.
Required:
(a)The entry to record the accounting change.
(b)The entry to record depreciation expense in the year of change.

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Definitions:

Birds

Warm-blooded vertebrates with feathers, capable of flight, with a beak but no teeth, laying hard-shelled eggs.

Fishes

Aquatic, gill-bearing animals that lack limbs with digits, often covered in scales, and residing in both freshwater and saltwater environments.

Flatworm

A group of simple invertebrates known for their flat bodies, including both free-living and parasitic species like tapeworms.